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DETAILED PROJECT REPORT FOR

M/S. abc cult
(A HDPE/PP Fabrics Project)

Bus.Office:
Address
Kalyan Nagar, Mudalapalya
BANGALORE - 560072.

This project has been designed to establish a Trading Concern at Bangalore. It is a Proprietorship concern owned by XYZ. The
proprietor hail from business family and is having experience in this line of business.
Now it is proposed to start operation with financial assistance from a suitable commercial bank.
Hence this project Report is presented.

Prepared by:
Pulkit Sharma
Chartered Accountant
# 1355/30, 9th Main Road
RPC Layout
BANGLORE - 560040
Phone.No : 23302440
Mobile : 96321 92440
e-mail
: bangalore@psca.co.in

M/S. abc cult

I N D E X
SL.

CONTENTS

PAGES

1
2
3
4
5

CHAPTER :
PROJECT AT GLANCE
COST OF THE PROJECT AND MEANS OF FINANCE
PROJECTIONS AND PROFITABILITY STATEMENT
CASH - FLOW STATEMENT
BALANCE SHEET

1
2
3
4
5

1
2
3
4
5
6

AN N EXU R ES
DEPRECIATION SCHEDULE
BREAK EVEN ANALYSIS
INTEREST SCHEDULE
DEBT COVERAGE RATIO
ANALYSIS ON RETURN ON INVESTMENT
ASSUMPTION AND WORKING NOTES

6
7
8
9
10
11

M/S. abc cult

CHAPTER NO. 1
PROJECT AT GLANCE :
1
Name
2
Address

:
:

M/S. abc cult

Reg.Office:
Address
Kalyan Nagar, Mudalapalya
BANGALORE - 560072.

Nature of Business

Trading

Constitution
Proprietor

:
:

Proprietorship

Cost of the project

:
Particulars
Operational Cost
Furniture & Fittings
Generator & Office Equipemnts
Deposits
Interest during the impl. Period
Total

(Rs. In Lakhs)
Total
53.43
5.00
1.00
2.00
3.58
65.00

Means of Finance
:
Particulars
Proprietor Contribution
Term Loan from Bank / Institution

Total
9.00
56.00

Total
6
7
8
9
10
11

Debt Equity Ratio

Debt Coverage Ratio
Gross Profit Ratio
Net Profit Ratio
Employment Potential
Return on Investment

65.00
:
:
:
:
:
:

6.22
3.37
9.34
8.77
10
153.13

Page 4 of 11

:1
First Year Operation.
First Year Operation.
%

M/S. abc cult

Bangalore
(A HDPE/PP Fabrics Project)

STATEMENT NO. 1
COST OF THE PROJECT AND MEANS OF FINANCE:
The project cost has been estimated at Rs.

65Lakhs

Brief details of the project cost is given below

Cost of the project
Particulars
Operational Cost
Furniture & Fittings
Generator & Office Equipemnts
Deposits
Interest during the impl. Period
Total

Means of Finance
Particulars
Promoters Contribution
Term Loan from Bank / Institution
Total

(Rs. In Lakhs)
Total
53.43
5.00
1.00
2.00
3.58
65.00

Total
9.00
56.00
65.00

M/S. abc cult

STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT
PARTICULARS
A.INCOME:
Income from Trading Activities
(50 tons*12*1.3)

In Lakhs
Operating years
2

390.00

936.00

1,123.20

1,347.84

1,617.41

390.00

936.00

1,123.20

1,347.84

1,617.41

351.00
6.00
0.12
0.45
357.57

842.40
6.30
0.13
0.83
849.66

1,010.88
6.62
0.13
0.71
1,018.33

1,213.06
6.95
0.14
0.60
1,220.74

1,455.67
7.29
0.15
0.51
1,463.62

C. Gross Profit [ A - B ]

32.43

86.34

104.87

127.10

153.79

D. Interest: on term loan

3.58
3.58

6.18
6.18

4.42
4.42

1.95
1.95

E. Selling & Admin. Exp.

1.80

1.89

1.98

2.08

2.19

27.06

78.28

98.46

123.06

151.60

8.12

23.48

29.54

36.92

45.48

18.94

54.79

68.92

86.14

106.12

0.45

0.83

0.71

0.60

0.51

19.39

55.63

69.63

86.75

106.63

L. Repayment of Term Loan

4.00

12.00

16.00

24.00

M. Net Cash A'ble (J - K))

15.39

43.63

53.63

62.75

(The Quanities Sold are expected to increase by 20% every

year)
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock)
Salary
Power Charges
Depreciation
Cost of Operations

F. Profit before Tax[ C - (D+E) ]

G. Income Tax
H. Profit after Tax ( F-G )
I. Depreciation added back
J. Cash Accruals ( H + I )

106.63

M/S. abc cult

STATEMENT No.3
CASH - FLOW STATEMENT :
(A HDPE/PP Fabrics Project)
PARTICULARS
A. Source of Funds :
Profit after Tax
Depreciation
Term Loan from Bank
Promoters Contribution
TOTAL OF ' A '
B. Application of Funds :
Furniture & Fittings
Gen & Office Equipts,
Deposits
Repayment of loan
TOTAL OF ' B '

C. Opening Balance

Operating Years
2

1
18.94
0.45
56.00
9.00

54.79
0.83

84.39

5.00
1.00
2.00
4.00
12.00

68.92
0.71

86.14
0.60

55.63

69.63

86.75

12.00

16.00

24.00

12.00

16.00

24.00

72.39

116.01

169.64

232.39

106.12
0.51
106.63

D. Net surplus ( A - B )

72.39

43.63

53.63

62.75

106.63

E. Closing Balance

72.39

116.01

169.64

232.39

339.02

M/S. abc cult

STATEMENT No.4
BALANCE SHEET
(A HDPE/PP Fabrics Project)
PARTICULARS
A. LIABILITIES :
Capital Account
Reserves & Surplus
Secured Loan
TOTAL

B. ASSETS :
Fixed Assets
Current Assets
Cash & Bank
Deposits
TOTAL

Operating Years
2

9.00
18.94
52.00

9.00
73.73
40.00

9.00
142.65
24.00

9.00
228.80
-

9.00
334.92
-

79.94

122.73

175.65

237.80

343.92

5.55

4.72

4.01

3.41

2.90

72.39
2.00

116.01
2.00

169.64
2.00

232.39
2.00

339.02
2.00

79.94

122.73

175.65

237.80

343.92

M/S. abc cult

Bangalore
(A HDPE/PP Fabrics Project)

ANNEXURE NO.1
DEPRECIATION SCHEDULE:
PARTICULARS
1. Furniture & Fittings
Depreciation @ 15%
WDV

(A HDPE/PP Fabrics Project)

WDV at the year end
0
1
2
5.00
4.63
3.93
0.38
0.69
0.59
4.63
3.93
3.34

3
3.34
0.50
2.84

4
2.84
0.43
2.41

4. Genr & Office Equipts

Depreciation @ 15%
WDV

1.00
0.08
0.93

0.93
0.14
0.79

0.79
0.12
0.67

0.67
0.10
0.57

0.57
0.09
0.48

Total Assets
[1+2+3+4]

5.55

4.72

4.01

3.41

2.90

Total Depreciation
[1+2+3+4]

0.45

0.83

0.71

0.60

0.51

M/S. abc cult

ANNEXURE NO.2
BREAK-EVEN ANALYSIS

A. Receipts

0
390.00

1
936.00

Years
2
1,123.20

B. Variable cost:

357.57

849.66

1018.33

1220.74

1463.62

0.45
3.58
1.80
5.83

0.83
6.18
1.89
8.90

0.71
4.42
1.98
7.11

0.60
1.95
2.08
4.64

0.51
0.00
2.19
2.70

E. Contribution [ B - C ]

32.43

86.34

104.87

127.10

153.79

F. P.V.Ratio [ E/B x 100 ]

8.32

9.22

9.34

9.43

9.51

G. Break - even [ Value ]

[ D / F x 100 ]

70.05

96.45

76.18

49.16

28.39

64.64

87.43

68.60

42.78

23.01

(A HDPE/PP Fabrics Project)

D. Fixed costs:
Depreciation
Interest on Term Loan
Administration Expenses

H. Cash Break Even

[ Without Depreciation]

3
1,347.84

4
1,617.41

M/S. abc cult

ANNEXURE NO.3
INTEREST SCHEDULE :
(A HDPE/PP Fabrics Project)
0

II

III

NOTE :

(Rs. in Lakhs)
QUARTERS
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4

OPENING
BALANCE
56.00
56.00
56.00
54.00
52.00
49.00
46.00
43.00
40.00
36.00
32.00
28.00
24.00
18.00
12.00
6.00

LOAN
REPAYMENT
2.00
2.00
3.00
3.00
3.00
3.00
4.00
4.00
4.00
4.00
6.00
6.00
6.00
6.00

CLOSING
BALANCE
56.00
56.00
54.00
52.00
49.00
46.00
43.00
40.00
36.00
32.00
28.00
24.00
18.00
12.00
6.00
-

Interest on Term Loan is calculated at 13% per annum liquidated in

4 year

INTEREST
PER QTR.
0.00
0.00
1.82
1.76
1.69
1.59
1.50
1.40
1.30
1.17
1.04
0.91
0.78
0.59
0.39
0.20

(Rs. in Lakhs)
INTEREST
P.A.

3.58

6.18

4.42

1.95

M/S. abc cult

ANNEXURE NO.4
DEBT SERVICE COVERAGE RATIO :
(A HDPE/PP Fabrics Project)

Operating Years
2
3

18.94
0.45
3.58
22.96

54.79
0.83
6.18
61.80

68.92
0.71
4.42
74.05

86.14
0.60
1.95
88.70

DEBT :
Term loan installment
Interest on Term Loan

4.00
3.58

12.00
6.18

16.00
4.42

24.00
1.95

TOTAL OF ' B '

7.58

18.18

20.42

25.95

C Debt Service Coverage Ratio

DSCR
[A/ B]

3.03

3.40

3.63

3.42

D Average DSCR

3.37

A. SOURCES :
Profit after tax
Depreciation
Interest on term loan
TOTAL OF ' A '
B

4
106.12
0.51
106.63

M/S. abc cult

ANNEXURE NO.5
ANALYSIS OF RETURN ON INVESTMENT :
(A HDPE/PP Fabrics Project)
1. Return on Investment
=
Average Return x 100
Capital Employed
2. Return

3. Capital Employed

Profit before tax + Depreciation + Interest on term loan

Cost of the Project

RETURN ON INVESTMENT :
PARTICULARS
Profit before tax

0
27.06

OPERTI NG YEARS
1
2
3
78.28
98.46
123.06

4
151.60

Depreciation

0.45

0.83

0.71

0.60

0.51

Interest on Term Loan

3.58

6.18

4.42

1.95

31.08

85.28

103.59

125.62

# Average Return

99.54

# Capital Employed

65.00

# Return on Investment

153.13 %

152.11

M/S. abc cult

ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
Revenue
In Lakhs
1
Sale of HDPE/pp Fabrics
Total Quantity Estimated to be sold for a month
:
50 tons
Sale value of each Ton
:
1.3
Monthly Revenue
:
65.00
Yearly Revenue
780.00
First year Revenue for 6 months
390.00
Every year the Revenue is estimated to increase
by 20%.
2

Material Purchase Costs

The material is estimated to cost at 90% of sales price.
The cost for 1 year is 390*90% = 351 Lakhs

Salary
S.No.

Category of Employee

No.of
Employees
1
Managers
2
2
Helpers
7
3
Accountant
1
Total
10
Note: Increament in salary is taken at 5% per annum

Salary per
Month
6,750.00
4,500.00
5,000.00

Power
Power Charges is estimated at Rs.1000/- per month and provision made for increase
in rates @ 5% per annuam

Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

Interest:
Interest on term loan is calculated at 13% per annum
Term loan will be repaid in 4 year

Selling and Administration Expenses:

Selling expenses includes sales commission, Post & Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.15,000/- per month and provision made for increase in cost
at 5% per annuam

Page 11 of 11

Salary per
Annuam
162,000.00
378,000.00
60,000.00
600,000.00